To date, we have disbursed over SGD 83 million across loans Long term dedicated capital and Lowest cost of funds help us dominate the market

Transcription

1

2 Validus operates a curated online lending marketplace funding SME Borrowers through Accredited Investors 8%-15% Net Interest p.a. (SGD) Our partners facilitating the business model Accredited investors Marquee Shareholders Investor protection Risk Assessment SME borrowers Financial institutions and HNWIs Visa Card Financing Unbanked / Underserved SME companies To date, we have disbursed over SGD 83 million across loans Long term dedicated capital and Lowest cost of funds help us dominate the market

3 OUR VIRTUAL CARD-BASED FINANCING MODEL

4 The opportunity in the B2B payments space is huge, but cards-based payments make up only a fraction of the market Estimated 2016 market size of global payments (USD bn) 2016 B2B Payments methods by Region (% of Values) Source: MasterCard Advisors 2016 B2B payments account for over 90% of total market However, <10% are done on cards High fees and tenor restrictions (55 days) make legacy card products unviable for B2B payments

5 Large corporations who are bank customers find this model too expensive for B2B payments SMEs, an ideal target for card-based payments, have traditionally been grossly underserved by banks and hence alienated from this model The existing 4-party model card payment process only suits a subset of merchants in the B2B space Network provider Issuer (Bank) Acquirer Business Customer Merchant (SME)

6 Validus proposed financing solution targets SMEs who are underserved by banks Network provider Issuer (Bank) Acquirer Issuer issues zerolimit card to Validus Validus loads card with funds and finances the merchant Merchant (SME) Borrower who requires short term working capital financing SME borrowers seeking working capital financing are acquired as merchants Validus finances the borrower by settling the transaction using a virtual card Our solution fits the traditional 4-party model while moving all credit risk to Validus

7 Validus proposed card-based product targets typical pain points faced by SME merchants Targets SMEs pain points SMEs which have been underserved by banks due legacy credit evaluation process can now avail on-demand financing Validus finances SMEs thereby improving their cashflow and enabling growth No credit risk to Issuer Credit evaluation and underwriting undertaken by Validus Issuer enjoys interchange and books fund flows on card with no credit risk No charge back risk to Acquirer Financing arrangement is entirely between Validus and the SME Merchant Charge back waived off High fee split for all parties Acquirer, Network provider and Issuer continue to derive a fee split from the transaction without taking on any risks Value-added benefits of recon services for SMEs With Validus automated payments tracking technology, Merchants enjoy value-added invoice and payment reconciliation solutions This reduces their manpower and time spent on manual, error-prone processes

8 Using technology not only enables SMEs to better manage their cash flow, but also helps SMEs effectively manage invoice and payment reconciliation Freed up Cashflow Invoice Financing A leading F&B distributor in Singapore wanted access to financing and solutions to better manage its invoices (>50k/month) Validus finances 100% of the invoice amount provided by the distributor and helps free up cashflow to further pursue growth opportunities Payment Reconciliation Invoice Management Distributor is now in better position to ensure all its payments are accounted for and has adequate funding with a vision to double revenue in 3 years Validus uses technology to perform complex payments reconciliation for over 2000 buyers monthly and provide the distributor with effective payment reconciliation and invoice management services Since May 2017 we have completed over 25 funding transactions totalling over SGD 6 million 2018 targeted volumes for this product: SGD 30+ million with present Issuer-partner

9 CONTACT THANK YOU NIKHILESH GOEL, Chief Operating Officer Main : hp : nikhilesh@validus.sg